Abstract:
This study empirically examines the macroeconomic determinants of technological progress (total factor
productivity) in Nigeria that is consistent with the endogenous growth theory. The estimations are carried out
with time-series data from 1970 to 2006 using the Johansen estimation techniques. The study is distinct
from most of the existing literature since it made an attempt in generating a time-varying technological
progress. It employs the Kalman filter technique to determine the evolution of the Solow residual estimated
from a Cobb-Douglas production function. The results conform to the existing literature that macroeconomic
instability, the level of financial development, and the level of human development are highly significant
determinants of technological progress in Nigeria.